Sustainability trends in fabricated metal product manufacturing

In their report on Canada’s Net Zero Industrial Strategy, Canadian Manufacturers & Exporters (CME) says that, “Societal pressures for improved social and environmental practices will dramatically change the types of products that manufacturers make and…how they make them.” The push for more sustainable manufacturing practices and process is being felt in all corners of industry, including fabricated metal products manufacturing.

The fabricated metal product manufacturing industry is a key component in Canada's industrial landscape, and supports sectors ranging from construction to automotive manufacturing. As with other industries, the spotlight on sustainability is reshaping the future of this important sector.

A recent report from the CWB Group research team provides an overview of the fabricated metals manufacturing industry in Canada and explores how sustainability and other drivers are influencing the future of the industry. (Read the full report: Canadian Manufacturing Industry: Fabricated Metals Manufacturing.)

Industry overview

The fabricated metal product (FMP) manufacturing sector encompasses businesses engaged primarily in forging, stamping, forming, turning, and joining processes to produce ferrous and non-ferrous metal products. These products include cutlery, hand tools, architectural and structural components, boilers, tanks, shipping containers, hardware, springs, wire products, turned products, and fasteners.

The FMP manufacturing sector is the fifth largest contributor to Canada’s manufacturing GDP in 2023, generating $16.5 billion. It represented 7.7% of the manufacturing industry’s total GDP and 0.75% of Canada’s overall GDP. Like most industries, FMP manufacturing experienced a significant downturn due to the COVID-19 pandemic, with a GDP decrease of 11.9% in 2020 and an 8.8% drop in employment. While there has been a gradual recovery, with a 2.9% increase in GDP in 2023 from the previous year, GDP still has not reached the levels seen in 2019.

Sustainability as a growing imperative

Companies in the FMP manufacturing industry are feeling increased pressure to focus on sustainability, and the industry is innovating and adapting to meet changing regulatory contexts and consumer demand. Some of the greener practices that FMP manufacturers are implementing include:

Integration of recycled materials: Companies are integrating more recycled materials such as steel, aluminum, copper, brass and bronze, zinc, nickel, and titanium to conserve natural resources, reduce energy consumption compared to raw material production, and support a circular economy.

Energy-efficient manufacturing processes: Fabricators are investing in energy-efficient machinery and processes to reduce overall energy consumption. From high efficiency cutting tools to advanced welding technologies, these innovations contribute to a smaller environmental footprint and can lead to long-term cost savings.

Adoption of advanced technologies: Advanced technologies, such as automation and artificial intelligence (AI), are allowing companies to achieve enhanced precision, reduced waste, and improved overall efficiency.

Certification to standards: The CWB (Canadian Welding Bureau) certifies companies, inspection organizations, inspectors, and welding consumables to ensure they meet a variety of product and safety codes. Certification can help lower rework and design efficient welded connections to reduce waste.

Implementing ISO 14001: Registration to the ISO 14001 standard helps organizations focus on improving environmental performance while reducing cost, waste, and risk. A comprehensive approach to environmental management also helps to demonstrate leadership and elevate reputation.

It’s important to note that sustainability drivers are influenced by regional, cultural, economic, and political factors. While global forces like climate change and international regulations affect all countries, the emphasis on sustainability varies widely due to differences in cultural values, economic priorities, political systems, and resource availability. Despite this fact, efforts to improve energy efficiency, reduce waste, and leave a smaller ecological footprint will remain strategically valuable.

The move toward greater sustainability presents challenges, including the need for capital investment and potential disruptions to traditional manufacturing processes, but it also offers substantial opportunities.

Companies that proactively adopt sustainable practices can gain a competitive advantage, meet regulatory requirements, appeal to environmentally conscious consumers, and potentially reduce costs.

Read the full report from the CWB Group: Canadian Manufacturing Industry: Fabricated Metals Manufacturing. (Ce rapport est également disponible en fran?ais : Industrie manufacturière canadienne : Fabrication de produits métalliques.)

The CWB Group is an industry-supported private sector organization providing welding certification, training, and education resources; industry-specific auditing services; and technical advice and support. Headquartered in Ontario, Canada, with staff and offices across the country, the CWB Group is accredited by the Standards Council of Canada (SCC) as a Certification Body for the administration of the Canadian Standards Association (CSA) welding-related standards. The CWB Group engages directly with stakeholders to promote and advocate on behalf of the industry and address challenges faced by the welding sector. Website: cwbgroup.org.